Stocks to Tap For Digital Payment Revolution

Non-cash transactions are projected to reach a whopping US$1.1 trillion by 2023.

Vikram Barhat 31 March, 2021 | 12:19AM
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The central bank of Norway announced last week that the country was the most cashless society in the world. A recent survey conducted by Norges Bank found cash accounted only for 4% of payments, the majority were made by digital wallets or contactless cards.

It’s not just Norway. A recent Capgemini report shows global volume of non-cash transactions hit US$708.5 billion, growing 14.1% during 2018–2019. As new payments methods – including mobile payments, digital wallets, eMoney transactions and other forms of digital payments -- take hold, non-cash transactions are projected to reach a whopping US$1.1 trillion by 2023.

The faster adoption of cryptocurrencies, particularly of Bitcoin, is set to further fuel the digital cash trend as legacy financial institutions and payment processors move to bring crypto into their operations. The following companies are at the leading edge of digital cash revolution and are well positioned to benefit as newer technologies and trends create tailwind for cashless transactions. Although these names are currently overvalued, investors may want to keep them on their screen for any buying opportunities that may emerge in the foreseeable future. 

 Visa Inc Class A

 

Ticker

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Mastercard Inc A343.41 USD1.79Rating
PayPal Holdings Inc272.34 USD1.06Rating
Visa Inc Class A222.75 USD1.17Rating

About Author

Vikram Barhat

Vikram Barhat  Vikram Barhat is a Toronto-based financial writer specializing in investing, stock markets, personal finance and other areas of the financial services industry. He also writes for CNBC, BBC, The Globe and Mail, and Toronto Star.

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